A VAR with k time series variables consists of
A) k equations, one for each of the variables, where the regressors in all equations are lagged values of all the variables
B) a single equation, where the regressors are lagged values of all the variables
C) k equations, one for each of the variables, where the regressors in all equations are never more than one lag of all the variables
D) k equations, one for each of the variables, where the regressors in all equations are current values of all the variables
Answer: A
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If beef and pork are substitutes for consumers, the cross elasticity of demand between the two products must be
A) negative. B) positive. C) indeterminate. D) elastic. E) greater than 1.
Your text mentions several ways that international trade flows are qualitatively different than they were a century ago. Which of the following is NOT one of those ways?
A) Firms' investment spending on capital goods is more important than in the past. B) International trade in raw commodities and agricultural products is more important than it was in the past. C) It is possible to trade some types of services in a way that was not possible in the past. D) Multinational corporations play a bigger role in production than they did in the past.